The currency pair has dropped to around 0.7080 during the Asian session on Friday. In February, Australia’s Unemployment Rate rose to 4.3%, falling short of the market consensus expectations. The PBOC kept the LPR rates steady in March, in line with what was anticipated. The currency pair is currently positioned in negative territory, hovering around 0.7080 during the Asian trading session on Friday. The Australian Dollar experiences a decline against the US Dollar following an uptick in Australia’s unemployment rate in February.
Data released by the Australian Bureau of Statistics on Thursday indicated that the Unemployment Rate rose to 4.3% in February, an increase from 4.1% in January. The figure surpassed the market expectation of 4.1%. The disappointing employment figures from Australia have lowered expectations for potential interest rate increases by the Reserve Bank of Australia, which may put downward pressure on the Australian dollar.
The probability of an interest rate increase in May 2026 has decreased from 61% to 57% according to money markets, following the release of the jobs data. The People’s Bank of China maintained its benchmark lending rates on Friday. The one-year and five-year Loan Prime Rates were at 3.00% and 3.50%, respectively.
The Federal Reserve held interest rates steady at a target range of 3.50% to 3.75% following its March meeting on Wednesday. The median projection continues to indicate one 25-basis-point rate cut anticipated later in 2026, although certain officials now foresee no cuts occurring this year. During the press conference, Fed Chair Jerome Powell remarked that the ongoing war in Iran has resulted in a “energy shock” and increased uncertainty, making the trajectory for future policy more intricate.